parismarx , to random
@parismarx@mastodon.online avatar

Sam Bankman-Fried got 25 years for his massive FTX fraud and owes $11 billion in damages. He joins a growing list of tech fraudsters being held to account — and more should join them.

Find out more in the Disconnect Roundup:

https://disconnect.blog/roundup-sam-bankman-fraud/

molly0xfff , to random
@molly0xfff@hachyderm.io avatar

Here's a peek into the sentencing hearing that ended with Sam Bankman-Fried receiving 25 years in prison. I also discuss some of the shock at what is being perceived as a light sentence, and the amount of time SBF is likely to actually serve.

https://www.citationneeded.news/sam-bankman-fried-sentenced/

Nonilex , to random
@Nonilex@masto.ai avatar

to 25 years in prison
The former mogul who co-founded also was ordered to repay more than $11B for his conviction on charges related to &


https://www.washingtonpost.com/business/2024/03/28/sam-bankman-fried-sentence-fraud-ftx-crypto/

molly0xfff , to random
@molly0xfff@hachyderm.io avatar

Sam Bankman-Fried has just been sentenced to 25 years in prison.

molly0xfff OP ,
@molly0xfff@hachyderm.io avatar

He has already been preparing his appeal, though I doubt very much he will have any success with it.

molly0xfff OP ,
@molly0xfff@hachyderm.io avatar

He has also been ordered to pay the $11 billion monetary judgment requested by the prosecution. This is on top of assets already seized by the government.

molly0xfff , to random
@molly0xfff@hachyderm.io avatar

wow. one of the new victim impact statements filed tonight is from someone who lost almost six figures to a hack in 2021, had assets stuck on voyager after its july 2022 collapse, and then lost assets to FTX

he went from working in the industry to vocally advocating against it

to financial system instability from hacks and user error alone. In fact, top PhDs and entire teams with cybersecurity pros get hacked for millions of dollars almost every single day. Yet, this deeply flawed, experimental tech is being aggressively marketed to unsuspecting users across exchanges similar to FTX, grossly underplaying the technical pitfalls and pervasive fraud in the industry. I urge the court to seriously consider what happens when millions of unsophisticated new entrants to crypto - including the elderly and young children - get hacked for and or lose billions of dollars, or their funds are gambled by the next SBF, after being marketed these products as "better" than the banking system. This may soon be the reality within 12-36 months. This is precisely what happened with FTX and other exchanges whose marketing were slogans akin to "Unbank Yourself" and "Banks are not your friends," and continues to happen with hacks every single day. When has society allowed private issuers of currency and outright ponzi schemes to prey on the masses in the name of unregulated financial "innovation"? It is time to end the crypto chicanery before the societal price truly becomes too big to bear. A serious discussion of reparative justice just as in any prior large scale financial fraud is in order - from crypto criminals like SBF who have used stolen customer funds for their own gain, to the industry PR machine supporting crypto predators. These incidents severely undermine tr

Hello, As an FTX creditor, incoming prospective MBA candidate at a top US program, University of Florida graduate, immigrant, and new US citizen, I wish to convey the profound and harrowing impact of the FTX fallout on my mental health, career, and view of the cryptocurrency industry. Having served as a crypto industry analyst across various sell-side research firms for two years, my deep understanding of this space only compounds my disillusionment following not just the collapse of FTX, but also my status as a Voyager creditor and victim of a nearly sixfigure hack in stablecoins a year prior—incidents unconnected but emblematic of the pervasive recklessness in the industry. These events precipitated severe mental health challenges, incurring over $12,000 in related expenses, tens of thousands more in lost income, and derailed my educational and professional advancement by two years. My shift from an ex-industry advocate to a vocal critic is a testament to the industry’s systemic failings and moral bankruptcy. My hope, post-graduate school, is to champion ethical business leadership—a stark contrast to what I've witnessed firsthand. I've since undertaken grassroots efforts, written to 3 Congressional committees urging for regulation, and applied for industry grants for education efforts to prevent more victims of fraud in crypto. In addition to personal setbacks, I am compelled to underscore the broader societal risks posed by the unchecked behaviors of the industry. Echoed
ALT
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    molly0xfff , to random
    @molly0xfff@hachyderm.io avatar

    most of the Sam Bankman-Fried/FTX victim impact statements are really heartbreaking. some of them are... not so much

    "your honor, i got wrecked by buying a shitcoin"

    Victim impact statement: I got wrecked by buying a shitcoin($BOBA), which I highly suspect SBF(who clearly has connections in Stanford) is in cahoot with the team of BOBA token (CEO of enya labs who launched BOBA tokens are from stanford university, and many of the team's members are from Stanford) to pump and dump on the token which goes to $7.49 dollar to less than $0.12. The token is now trading around $0.5~$0.6. This amount of fall is clearly manipulated, in hindsight this is obviously price manipulation to extract money from retail. I lost $50k usd from their shenanigans. This money was supposed to be used for my further education. Now I have to start from the bottom again and I feel strongly that I should be compensated for the fraud and manipulation they pulled on retail users like me. I hope Justice prevails and laws should be used to uphold the integrity, stability and trust of society. Some white collar crimes are obvious, others are very good at hiding their maneuvers, lie with no conscience and covered their tracks carefully not to be caught, both types of criminals should belong in jail and kept away from the public or common people in general.
    ALT
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    molly0xfff OP ,
    @molly0xfff@hachyderm.io avatar

    (the token in question had already tanked well before FTX collapsed)

    molly0xfff , to random
    @molly0xfff@hachyderm.io avatar

    https://www.citationneeded.news/issue-52/

    Bitcoin's spiking — are we in for another round of crypto mania? I also go through Sam Bankman-Fried's sentencing memorandum, in which he asks for 6 years imprisonment instead of the recommended 100, and the 29 people who wrote letters in support.

    molly0xfff OP ,
    @molly0xfff@hachyderm.io avatar

    These are the 29 people who wrote letters in support of Sam Bankman-Fried's request for a lenient sentence. As you might expect, Stanford is well represented, as are members of the effective altruist community.

    A-15 Wayne Hsiung Animal rights activist A-16 George Lerner Former FTX company therapist, personal psychiatrist to Bankman-Fried A-17 Barbara Levitt Parent of childhood friend A-18 Judy Mark Disability rights advocate and autism expert A-19 Barbara Miller Aunt A-20 Edward Mills McMaster University Professor of Health Sciences, COVID-19 clinical researcher who sought funding from Bankman-Fried A-21 Hassan M. Minhas Clinical psychiatrist who evaluated Bankman-Fried in July 2023 at the request of his defense team A-22 Matthew Nass Childhood friend A-23 David Pearce Effective altruist A-24 Ross Rheingans-Yoo Friend, FTX Foundation employee, and fellow effective altruist A-25 Carmine Simpson Fellow inmate at MDC Brooklyn, former NYC police officer charged with sexual exploitation of minors A-26 Douglas Slemmer Someone who had business dealings with Bankman-Fried A-27 Natalie Tien Former Head of Communications at FTX and Executive Assistant to Bankman-Fried A-28 Francois Venter University of the Witwatersrand Professor who sought funding for clinical trials in Africa A-29 Kat Woods Victim of FTX collapse who lost "most of what [they] had"

    # NAME RELATIONSHIP A-1 David Arfin Parent of childhood friend A-2 Joseph Bankman Father A-3 Gabriel Bankman-Fried Brother A-4 Michele Barry Stanford Dean for Global Health, donation recipient A-5 Stephen P. Boyd Stanford Professor of Electrical Engineering, friend of SBF's parents A-6 Jeremy Brest Managing director of Framework Capital, corporate financial advisor to a company that wanted to acquire FTX assets after bankruptcy A-7 Paul Brest Stanford Professor Emeritus of Philosophy, former dean of Stanford Law School, and friend of SBF's parents A-8 Madeline Chaleff Parent of childhood friend A-9 Daniel Chapsky Former FTX Head of Data Science A-10 Edward Dodds Friend, fellow effective altruist A-11 Louis Dron Donation recipient A-12 Mark Dybul Georgetown Professor of Medicine, Interim Chairperson at Purpose Africa. Spoke to Bankman-Fried about pandemic prevention at a workshop A-13 Jamie Forrest Executive Advisor at Purpose Africa who spoke to Bankman-Fried about a pandemic resesarch proposal. A-14 Barbara Fried Mother
    ALT
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    • + saddestrobots
    molly0xfff , to random
    @molly0xfff@hachyderm.io avatar

    Sam Bankman-Fried's mother, Barbara Fried, writes of her son's compassion in her letter to the judge. "To this day, Sam is the first person we would call if we needed an angel of mercy in a pinch."

    ....does she not know the common meaning of that phrase??

    https://storage.courtlistener.com/recap/gov.uscourts.nysd.590940/gov.uscourts.nysd.590940.407.15.pdf

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